We’ll build lots of new homes, promises Leo
(but no, sadly he didn’t tell us how many, or where, or when...)
THE Minister for Housing is bringing proposals to Cabinet next week to establish the Land Development Agency to ‘build new homes and lots of them’.
The Taoiseach said the significance of this is so momentous that it would be on a par with the creation of the ESB or the Aer Lingus.
Speaking in Galway, Leo Varadkar said that the new agency would have ‘€1.25billion behind it’ but did not elaborate on whether the money would come from government funding or from borrowing.
It appears the new superagency will be a child of Nama, the National Asset Management Agency, taking over much of its work, property portfolio and its staff.
The Taoiseach and Cabinet were at a Fine Gael party thinkin where the housing crisis was discussed for several hours.
Other activities included drawing with crayons and an acting class on a day when TDs were encouraged to attempt teambuilding exercises.
The Taoiseach confidently declared to his party yesterday: ‘This is a step change in the Government’s involvement in the housing market. We are going to build new homes and lots of them… social housing, affordable housing, private housing and rental on State-owned land and privately owned land.
‘This is an intervention which is 50 years overdue and, in time, I believe will be seen to be as significant as the decision to establish the ESB, Aer Lingus or the IDA.’
Last night there was a dearth of detail on the landmark agency and its source of funds, as well as on the scale of its powers – such as whether it will be able to engage in compulsory purchase.
Asked by the Irish Daily Mail last night to explain, and whether it would saddle the taxpayer with huge-scale borrowings, Housing Minister Eoghan Murphy said: ‘I would love to say more to the Mail, but my lips are sealed.
‘It all has to await the official announcement next week.’
But he earlier shared that the new State arm – intended to last for decades – was part of Project 2040, which is about renewing and improving the infrastructural fabric of Ireland. The agency was ‘a very big part of that plan’, he added.
‘It is imperative to have such a body, we are agreed. It will deal with issues that have been a long time around, such as the recommendations of the Kenny Report [on land ownership, which is 40 years old].’
Mr Murphy declined to give any annual delivery targets for the new houses, except to reiterate that the property types would be across the board. And it would have the firepower of €1.25billion to make sure of success.
Finance Minister Paschal Donohoe dodged a question on Nama’s role in the new agency, although the Mail understands there is certain to be a crossover of staff, resources and at least major elements of its property portfolio. Mr Donohoe said: ‘It will be formed in such a way that it will have the authority to take over State land and to use it for housing.’
Mr Varadkar later told his rank and file at the party get-together in Salthill: ‘Let there be no mistake, Fine Gael believes firmly that every family should have a place to call home.’
Meanwhile, Mr Murphy threatened yesterday to take over ‘two or three’ local authorities if they do not obey his instructions to use the powers and resources given to them to address homelessness in their areas.
‘This is 50 years overdue’